Among the many ways by which you can invest in gold such as ETFs, stocks and physical gold, it is wise to purchase physical gold in the form of coins and bars.

If you are interested to know how to invest in gold bullion, the following paragraphs are just for you.

Coins or bars?

Gold bullion can mainly be bought in either bar or coin form. Coins allow you more flexibility during trading as compared to bars since you have a larger breakup of your investment. On the other hand if you intend to buy a lot of gold then bars make more sense.

Investing in gold coins

You will find all sorts of coins in the market ranging from American Eagle to Chinese Panda. You can also get rare and antique coins that are more expensive than others. Such rare coins are called numismatic coins and have a collectible value too.

However, for an investor, it is best to avoid such antiques and focus mainly on the ones that offer the least premium over spot price.

Krugerrand, the first gold coin was produced in South Africa and its denomination was one ounce. This coin trades the least over spot price and is hence a good buy. Few other good investment options are the Britannia and the Sovereign.

How to buy

Before investing in gold bullion, it is imperative that you consider costs and research potential gold dealers before making a purchase. The price of your bullion will depend on where you buy it from, current demand and supply scenarios and the type and quantity of the bullion. The major benefit of buying gold bullion is that it guards you against a financial breakdown.

Gold can best be described as an insurance that will come to your rescue if the stock market takes a big dip and you need liquid assets. It rides on the sentiments of the public and keeps itself insulated from market curves. Thus bailing the owner out of tough financial times.

While everyone is talking about investing in gold, very few people really understand the benefits of investing in it. For one to favor this kind of investment over any other, it is imperative to know the exact reasons why you should do it. As such, this article examines some of the reasons why you should invest in gold.

With many currencies from all over the world losing value by the day, you should give the idea of investing in gold some serious thought. Remember that in the tumultuous and unpredictable world of global monetary melt-downs, with things such as technological advancement and banking crises, one has to be thoughtful and savvy enough in order to stay afloat.

Seven Reasons Why You Should Consider Investing in Gold

With an investment held in form of gold, one can easily guard their treasure against the ever-increasing currency devaluation that world currencies are facing every day.

In case the rate of inflation increases, one can securely protect their purchasing ability since inflation and deflation do not directly affect the value of gold.

Since we have all heard of cases of banks collapsing, holding one’s money in terms of gold cushions them against losses should a particular bank collapse.

When the economic giants such as China, Europe, or the US face a fiscal crisis, one’s wealth remains intact since gold does not easily lose value.

There are some uncontrolled actions that governments can take, badly injuring the financial well-being of investors. This is not the case with investors who have invested their money in gold.

There are no counter-party risks involved when one holds their wealth in terms of gold.

From the record, the trend of gold valuation is very favorable and investors in gold can look forward to a booming and prosperous future with this precious mineral.

Despite the ever fluctuating financial and political climate, investors who have held their assets in terms of gold have a reason to smile. Knowing that they have a tangible asset in case of a stock market crash or economic meltdown. For more great investing articles check out this scoop.it curated by Gold Hawk Resources.

Gold concentrations are found both above and below the ground. The gold on the surface is alluvial gold and is concentrated mainly by the action of running water. Underground loads of gold are made by association with other metallic deposits such as pyrites and sulphites.

Gold mining involves a number of processes including exploration, drilling, assessment, extraction, refinement and delivery of gold to the refiner.

Based on the location of gold deposits, gold mining is primarily of two types:

Open Pit Mining:

This kind of mining process is used when there is a possibility of finding gold close to the surface and when the site makes open pit mining feasible both environmentally and economically. As the name suggests, it involves digging a giant hole in the ground with roads leading to the top of the mine and around it to ease the movement of machinery in and out of the mine.

Heavy machines and explosives, both of which involve high costs, are used to excavate the ore. Statistics reveal that expenditure on fuel alone can cost as much as 25% of the cost of the entire mine. Every ton of ore that is mined from the pit may contain close to about a tenth of an ounce of gold.

Underground Mining:

At places where gold is further deeper into the ground or where there are other factors that prohibit open pit mining at the site, underground mining is resorted to. In such type of mining, deposits are reached by tunnels that branch out of a dug in shaft. Although this process is straightforward, it is very technical and requires a lot of effort.

It involves drilling holes for the explosive, setting off the explosive and then getting the entire debris out. You may think that the days of wheelbarrows and shovels are over, but this process requires a lot of such back breaking effort despite the explosives, trucks and rail haulage.

The world has seen a record high in the production of gold from mines in the recent past. This has reduced the prices of gold and as a result, a number of big names in mining have suspended few mines and projects following the dramatic drop.

However, given the popularity of this metal among the masses and its capability to shield the owner against shaky markets, demand for gold is here to stay and mining gold will remain a sought after venture.

A precious metal is used for different purposes. Heavy engineering industries and jewelry manufacturers use metal as a major raw material during the manufacturing process. Unfortunately, precious metals are rare to find. They have a huge demand.

But they have a very limited reserve. The extraction process is also very hard at times. This is why there considered precious metals and the price of the metal also rises.

Here is a video on how to invest in precious metals.

This article will discuss the three most popular metals found on earth.

Silver

This is one of the most valuable metals. This gorgeous white metal is produced due to a chemical reaction between magnesium, silver nitrate and water.

It’s mostly found in China, Peru, Chile and Mexico.

This metal is often used to make jewelries. It helps to prevent bacteria, mold growth and control bad odor.

When is the last time you thought about your future after retirement? Most people have the tendency of putting that subject matter on hold till a later date. Others would love to start saving for the future but they don’t know where to invest their hard earned money.

Well, there is an investment plan that can work for you, it’s investing in gold or other precious metals. In the article below I will explain how to invest in gold for your retirement. Let’s see briefly what this investment is and the common benefits that come with it.

What is a Gold IRA Rollover?

If you have an Individual Retirement Account (IRA) or a 401 (k) from work then it is possible to rollover the funds to a gold IRA.

The process is quite simple:

Open a new IRA with a gold or other precious metals company or custodian.

Your new IRA custodian will inform your current gold IRA company and authorize the transfer of funds.

Purchase your new gold investments with your new retirement account.

It is that easy. You can get lots of information from the gold IRA companies before investing with them. Keep in mind, though, that you can still do a Gold IRA rollover with your current IRA if they have that investment plan. Before choosing a trusted gold IRA custodian, make sure that they are approved by the Internal Revenue Service (IRS).

What Are Its Benefits?

There are several benefits that this method of investments offer compared to other options like investing in the stock market or real estate.

Economic Recession: Remember, you are saving for the future and judging from past economic recessions, the aforementioned options were affected during the latest recession in 2008. Investing in gold and other precious metals can really help offset economic downturns since economic recessions don’t affect them that much and their values don’t depreciate, actually, they appreciate.

There are no taxes imposed on gold and they are kept safe in a depository vault until you attain the retirement
age.

Generally, they are not government dependent.

Your savings are protected in case of hyperinflation.

So, if you are looking for a profitable investment to save for your retirement, investing in gold and precious metals is a great way. Since they are immune to future unpredictable stock market downturns, they provide a great way to diversify your portfolio. For more great gold investing advice check out Gold Hawk Resources, they have a lot more detailed information. You can also find them on Facebook, Linkedin, or Twitter.